Kohima: As India prepares for a projected 9-10% rise in peak power demand this summer, Nagaland continues facing a severe power deficit, relying heavily on imports to meet its electricity needs. With the state’s peak demand reaching 193 MW and off-peak demand at 130 MW for 2024-25, the existing supply remains inadequate, leading to frequent power disruptions that impact households, businesses, and entrepreneurs.
Of the state’s 193 MW peak demand, it imports 95% of its requirement during the lean season and 90% during the monsoon.
Nagaland remains heavily dependent on external power sources, with negligible self-generation. The central sector allocation stands at 202 MW, but actual availability fluctuates—132 MW during the monsoon and a mere 98 MW in the lean season.
State-owned power generation is even lower at 26, with only 21 MW available during the monsoon and 12 MW in the lean season. Nagaland operates only a handful of power generation projects: 24 MW Likimro Hydroelectric Project (HEP) in Kiphire District; 1 MW Lang HEP in Noklak District, and 1 MW Tehok HEP in Mon District.
From April 2024 to January 2025, these projects collectively generated 72.24 million units (MU) of electricity—far from sufficient to meet growing demand. The electricity produced from these hydropower projects is injected into the state grid.
To meet additional power requirements, the state relies on its allocated share from Central Public Sector Undertakings (CPSUs) such as NEEPCo, NHPC and NTPC.
As per the Nagaland Economic Survey, till September 2023, the state had 56 operational 33kV feeders and 99 33/11kV substations which are essential for stepping down high-voltage electricity for further distribution. There are 295 11kV feeders.
Currently, the state’s peak demand is 193MW and 130MW off-peak. As per an official record by the Department of Power, the state’s power requirement is projected to escalate to 360 MW by 2030.
According to the Nagaland Economic Survey 2024-25, the state recorded 3,17,210 electricity consumers in 2023-24. Of the total consumption, 40% was attributed to domestic use, 16.77% to commercial establishments, and 6.92% to the industrial sector.
Bulk consumers accounted for 15.88%, while the Village Electricity Management Board (VEMB) and Urban Electricity Management Board (UEMB) consumed 15% and 4.76%, respectively. Public waterworks and public lighting accounted for 0.06% and 0.16% of the total consumption.
Revenue loss
Nagaland Chief Minister Neiphiu Rio acknowledged that revenue losses in the power sector have made it increasingly difficult to provide uninterrupted supply.
“The revenue loss in the power sector has made it increasingly challenging for the Government to ensure uninterrupted power supply, especially amid rising demand from households, businesses and entrepreneurs,” Rio declared as he presented the 2025-26 budget during the Nagaland Legislative Assembly session.
The CM revealed that in the power sector, Nagaland records a staggering revenue loss of Rs. 300 crore.
As per official data, Nagaland’s power purchase stood at 925.65 MU in 2023-24 amounting to Rs 557.67 crore while it generated Rs 296.71 crore in revenue, an increase from 553.95 MU in 2022-23 which amounted to Rs 293.93 crore.
The Department of Power estimates the revenue target for FY 2024-25 at Rs 479.39 crore. Data revealed that total revenue collection till December 2024 recorded Rs 191.93 crore, an increase of 6.46% compared to the last financial year.
Official data showed that in 2021-22, the state purchased 907.8 MU at Rs 459.47 crore which generated Rs 217.12 crore.
In 2023-24, the state recorded notable revenue receipts across three quarters. In the first quarter, revenue stood at Rs 54.18 crore, reflecting a 5.93% increase. The second quarter saw the highest collection at Rs 68.64 crore, marking a rise of Rs 14.52 crore (26.83%). However, revenue declined to Rs 57.46 crore in the third quarter, though it remained 11.42% higher than the previous year. The fluctuations in revenue collection highlight seasonal and operational variations.
Power woes cripple small businesses.
Kevitho Kera, an entrepreneur from Dimapur, highlighted the severe impact of Nagaland’s power crisis on small businesses. Recalling his experience as a former departmental store owner, he shared how a power outage once led to an entire batch of ice cream melting, resulting in significant losses.
Processed goods like meat products were also at constant risk due to unreliable electricity. Now running a household paint business, Kera faces similar challenges, with his two machines entirely dependent on power.
He told EastMojo that frequent outages during colour processing have not only caused financial setbacks but also forced customers to wait for electricity to return.
“How can we even talk about setting up big manufacturing units or factories when small retail businesses like ours struggle? No one will even dream of investing in our land if this continues. The Nagaland government needs to start by covering the basics,” Kera asserted.
Kohima-based entrepreneur Ruokuolazotuo, proprietor of Elite Gaming Client cyber cafe, has suffered severe losses due to frequent power outages. The unreliable electricity supply has disrupted business operations, leading to revenue loss as customers cannot access computers or avail of services during blackouts.
Beyond financial setbacks, power fluctuations and surges have also damaged essential equipment such as computers, routers, and other electronic devices, adding to maintenance costs. “Frequent outages frustrate customers, and many stop returning,” Ruokuolazotuo told EastMojo.
To counter the impact of outages, he has invested in inverter systems, which provide temporary relief. However, the upfront cost of installing an inverter ranges between Rs 70,000 to Rs 85,000, with additional monthly maintenance expenses of Rs 1,000 to Rs 2,000.
He stressed the need for government intervention to address the power crisis including investing in smart grid technology to detect and respond to outages more efficiently and promoting green energy initiatives like solar power to reduce dependency on traditional energy sources.
With businesses across sectors suffering due to erratic power supply, small entrepreneurs are calling for immediate reforms to ensure a stable and sustainable energy future in Nagaland.
What next?
The 2025-26 state budget earmarked significant funds to improve the power infrastructure. Rs 10 crore was earmarked for the Nagaland Solar Power Mission to encourage rooftop solar installations under the PM Surya Ghar Muft Bijli Yojana.
The government also announced its plan to provide a State subsidy of Rs. 20,000 per KW up to a maximum of Rs 50,000 per consumer, to enable households to benefit from clean and affordable energy. A dedicated Solar Power Mission Unit is also expected to oversee the implementation, ensuring efficient and timely execution.
To enhance efficiency and accountability, the government has rolled out smart prepaid meters across the state. These meters are expected to ensure accurate billing, reduce losses, and provide emergency credit facilities for consumers.
“The success of this initiative depends on the cooperation of every citizen and proactive action by the department,” said Rio, emphasising the importance of public participation in addressing the crisis.
The department acknowledged that while there are other factors leading to revenue loss, rampant theft of electricity remains a major factor. To address the issue, the department launched the Anti-Power Theft Mobile Squad (APTMS) to check theft/pilferage of electricity in Kohima and Dimapur, as both cities combined consume a major bulk of the state’s power purchase.
Meanwhile, on December 11, 2024, the 2.4 MW Duilumroi small hydro project in Peren district was commissioned. The Rs 36.70 crore project is expected to generate an annual energy of 11.95MU which will potentially reduce the state’s power purchase.
The Centre has approved the Lower-Tizu Hydro Electric Project (HEP) with 42MW capacity and Zungki HEP with 24MW capacity, from the Kiphire district, for EAP funding by the Asian Development Bank but the project is expected to start only after due diligence studies and DPR strengthening by the ADB. Another HEP project at Tizu in Phek has been proposed by the state government to the Centre for funding under ADB.
With substantial budget allocations and upcoming hydro and solar projects, Nagaland is poised to reduce its dependence on external power purchases while promoting clean energy solutions.
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